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All the lights are red for Bitcoin, which seems to be on the verge of falling again. Aside from the big whale moves that often portend a downturn, crypto exchanges seem to lack enthusiasm from buyers. Indicators like the Sharpe ratio do not bode well for the possible growth of BTC pkkkkrix.
Abandoned by the big players: Bitcoin in danger
Yesterday, May 13, the crypto community held its breath as Bitcoin showed signs of growth, reaching USD 63,417 around 19:00 (Paris). The drop to $56,000 at the beginning of the month caused panic among traders.
A recent analysis by AMBCrypto reveals a worrying trend in the Bitcoin market. According to CryptoQuant, the index was -0.050, indicating that many US Bitcoin holders are selling rather than hoarding.
Commenting on the trend, Signal Quant, a portfolio profiling expert and author at CryptoQuant, said that Bitcoin’s price could undergo another correction before rebounding.
” The current trend of Coinbase Premium is currently positive, almost zero. So if the historical pattern repeats itself, we might have a better chance of success if we wait a bit longer and invest on the bounce after the trend turns negative. »
BTC is currently priced at $62,785, up 2.94% in the last 24 hours. However, this increase may be short-lived.
Thus, Bitcoin could experience another decline, as indicated by signals from the Coinbase Premium Index. This index measures buying pressure among US investors, a crucial factor given the large number of bitcoin holders in the country.
A high premium value means increased buying pressure, while a low Coinbase Premium index means increased sales.
Risky season has arrived
Sharpe ratio analysis offers a disturbing look into the future of Bitcoin. Currently at -2.22, the ratio indicates too much risk for the potential benefits.
For Bitcoin to bounce back, the ratio would have to reach the zero midpoint. However, the total Bitcoin supply in profits is currently at 87.03%. For a significant recovery, this number would have to fall to around 78.20%, which is the same level as in March, before the previous recovery.
A drop in supply could push BTC above $75,000. On the other hand, if the number of coins in circulation increases, Bitcoin could fall further. Currently, the daily circulation is 17,600, indicating a decrease in transactions.
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The blockchain and crypto revolution is in full swing! And on the day the effects are felt by the most vulnerable economy in this world, I will say against all hope that I had something to do with it
DISCLAIMER OF LIABILITY
The comments and opinions expressed in this article are solely those of the author and should not be considered investment advice. Before making any investment decision, do your own research.
